A new study by the Institute for Human Development and the International Labour Organisation (ILO) reveals a troubling picture of rising unemployment among young, educated Indians. The "India Employment Report 2024" highlights a significant disconnect between educational advancements and job market realities.

Youth unemployment has nearly tripled since the turn of the century, skyrocketing from 5.7% in 2000 to a staggering 17.5% in 2019. While there's been a slight improvement to 12.1% in 2022, the overall trend remains concerning.

This exposes a deep-seated mismatch between the aspirations of India's young workforce and the available job opportunities. 

While India boasts a large working-age population, this demographic dividend could be a wasted opportunity.  Although the youth population currently sits at 27% (2021), it's projected to decline to 23% by 2036. This means India has a limited window to capitalize on its young workforce.

Each year, a staggering 7-8 million young people join the workforce. Their productive utilization is crucial for India to reap the benefits of the demographic dividend. However, the current unemployment trend threatens to squander this opportunity.

The report further highlights a significant gender disparity in the workforce. A substantial number of young women are neither employed nor enrolled in education. This not only exacerbates the overall unemployment situation but also represents a missed opportunity to tap into India's full potential.

Technological advancements and the shift towards digitalisation are reshaping job demands, highlighting the urgency for the youth to adapt to new skill requirements. 

The report points out that while some improvements in labour force participation and unemployment rates have been observed since 2019, the quality of employment, particularly in terms of informal work, remains a concern.

The "India Employment Report 2024" provides five policy recommendations specifically for youth in India aimed at creating jobs, improving employment quality, and addressing labour market inequalities.

It emphasises the need for better data to inform policy decisions and adapt to the changing economic landscape influenced by technological progress and the aftermath of the COVID-19 pandemic.

The India Employment Report 2024, the third installment from the Institute for Human Development, analyses labour and employment trends based on National Sample Surveys and Periodic Labour Force Surveys data from 2000 to 2022, including insights into 2023.